Last week, President Barack Obama announced that his administration would be pushing for new overtime rules that could result in bigger paychecks for up to 5 million Americans.
According to USA Today, the change would raise the salaried worker overtime threshold to $50,440 per year, from $23,660, for workers who are now exempt from overtime benefits. The rule change, which could potentially be approved without Congressional support, would greatly affect workers who are now exempt from overtime, who work in positions designated as management or administrative personnel.
Business groups are pushing back against the expansion, saying it could result in a decrease in the number of full-time positions offered to Americans, with employers instead hiring more part-time workers to circumvent overtime pay.
Meanwhile, the Obama administration said the change would lead to higher pay for workers or more jobs, as businesses are forced to decide to choose between paying overworked employees’ overtime and hiring more workers to staff overworked positions. “Right now, too many Americans are working long days for less pay than they deserve,” President Obama wrote in an op-ed for The Huffington Post, announcing the proposal. “That’s partly because we’ve failed to update overtime regulations for years.”
It could take several months before the new rules takes effect, as the proposal is now subject to a 60-day public comment period. Continue to follow our blog and we will update you if the new regulations are enacted.
Can an Attorney Help Me With an Overtime Claim?
Unfortunately, it is not uncommon for businesses to misclassify employees as managers to circumvent overtime laws, making them exempt. They do this to cut operating costs at the expense of their employees. Under Obama’s proposal, many more employees who work more than 40 hours will be entitled to overtime pay.
Keep in mind, employees who have been wrongly denied overtime pay may be entitled to recover unpaid wages, plus attorneys’ fees, costs, and interest through litigation. Talk to our Los Angeles labor attorneys about your legal rights to seek back pay.
Our lawyers can determine if you have a wage or overtime claim, and/or direct you to an agency that can assist you.
Kesluk, Silverstein & Jacob– Los Angeles employment attorneys